Smart Ways to Bequeath Your IRA

You Can Prevent Young Beneficiaries From Cashing Out Immediately

By

Carolyn T. Geer

April 26, 2014 8:08 p.m. ET

Like many married couples, Carol Hartman and her husband, of Carmel, Ind., ultimately want to leave their individual retirement accounts to their children, currently 21, 25 and 27 years old. But they're uncomfortable giving them unfettered access to large sums of money.

"While they would have the right to a stretch IRA [literally, stretching the mandated annual IRA payouts over their own life expectancies and therefore prolonging the IRA's tax advantages], they also could draw the entire amount from the IRA as soon...